Banks to refer 23 large stressed accounts to NCLT for insolvency proceeding

Published On: 13, Dec 2017 | Source: business-standard.com

With the RBI's deadline ending on Wednesday to resolve the 28 large stressed accounts that the regulator had identified on its second list, banks are set to refer as many as 23 of them for insolvency proceedings.

Many bankers said that though they asked for extension on today's deadline, they don't expect the RBI to oblige.

Once these accounts pass the resolution deadline, banks will have to refer them to the NCLT in the next 18 days, that is December 31.

Banks will also have to make a provision of 50 per cent on these accounts by March 2018.

It can be noted that of the 12 largest accounts that the RBI had named on the June list, 11 of them are under the NCLT. These 12 accounts were worth a quarter of over Rs 10 trillion dud loans in the system.